Chapters
At first glance, it's easy to associate globalisation with solely technology and development. A comprehensive geography education will reveal that this is only scratching the surface.
Without solid global systems and good global governance, globalisation would not have evolved into what it is today.
In this article, we will review the following points:
- Diffent types of globalisation
- Global systems
- International trade and access to markets
- Global governance
- Protection of global commons
Different Types of Globalisation & Their Significance
Essentially, globalisation is the CONNECTION and MOVEMENT of goods, money, knowledge, ideas, and people across national borders — encompassing the economic, political, social and cultural spheres.
Let's look at the dynamics and examples of economic and political globalisation.
| Types of globalisation | Scopes covered | Parties involved | Significance |
|---|---|---|---|
| Economic | International trading Movement of industries to developing countries Global transactions (money flow and products flow) | Transnational corporations (TNCs) Trade Blocs International companies | Bring about economic growth and overall development. Create economc integration between states. Generate varied sources of income globally. |
| Political | Government policies and decisions in terms of making trade blocs, trade deals. The role of Western democracies and deregulation policies Mediation between political relations and national economies | International organisations like the United Nations, World Bank and International Monetary Fund. | Development of market economies. Growth of international markets. |
Globalisation operates not only at the macro level but also on a micro scale.
For example, purchasing facial masks online from South Korea for personal use is a form of economic globalisation. Similarly, importing oil and gas under international trade also exemplifies economic globalisation.
Some examples of political globalisation include local government initiatives to follow the Sustainable Development Goals (SDGs) listed by the United Nations and collaborations with institutions like the World Bank and the International Monetary Fund (IMF).
Next, let's review the key characteristics of cultural and social globalisation.
| Types of globalisation | Scopes covered | Parties involved | Significance |
|---|---|---|---|
| Cultural | Exposure to a variety of media sources (traditional and digital) Increase in international travels Consumption of popular culture (language, movies, music, fashion, art) like Western media or Korean media. | Owners and stakeholders of media sources at a global level International brands and media. | Recognition, appreciaton and even adoption of other cultures. Greater awareness of international brands and famous figures in the entertainment industry. |
| Social | International immigration The rise of social networking sites to build connection and share ideas. Partnerships between international institutions for social causes. | Global non-governmental organisations | Birth of more multicultural societies and economic sectors. Impactful human connection and interactions — better access to international news. Global improvement of education and health. |
One example which illustrates the influence of cultural globalisation is the worldwide spread of pop music. British performers like Adele and Coldplay have global concert tours across different continents. Their music has a worldwide following, alongside multigenerational fans whose first language is not English.
On the other hand, social globalisation is evident in the usage of social media platforms like Facebook, Twitter, and Instagram. When used wisely, social media can be an effective tool for real-time communication and transforming ideas into actions.
Global Systems — Figuring Out How The World Runs
Now that we have reviewed the various forms of globalisation, it's time to study the structure, network and relationship behind them — how different global systems come together to shape the way the world operates today.
These global systems exist because of constant movement (flow) from one country to another, in different forms, which we will explore further below. These flows between countries also signify their interdependent relationship, whether it comes to political, economic, social or cultural interests.
Sometimes, unequal flows can lead to inequalities, injustice, and conflict, especially for lower-income countries that depend on higher-income countries for different flows.
Global systems also signify an increase in international trade and investments — flows of capital from higher-income countries to lower-income countries to create new goods.
Then it's followed by flows of products from the lower-income countries back to higher-income countries.
The Significance of International Trade and Access to Markets
When it comes to international trade, countries need to have strong access to markets for long-lasting import and export abilities.
One primary factor that influences access to markets includes trade agreements like the Special Economic Zones (SEZs) and Special and Differential Treatment (SDT) agreements. These agreements increase a country's access to the market by offering lower taxes and lower tariffs — facilitating easier international trade.
A type of tax imposed by the local government towards goods that are imported. It makes the imported goods more expensive — creating healthy competition between more affordable local goods while raising the country's revenue.
Transactional corporations which operate across different countries play a significant role in effective international trade.
These different corporations unite under the headquarters (usually located in a high-income country) and take part in the manufacturing, production, research and development process of developing a good or service.
To maximise the corporation's profit and productivity, the leadership will usually resort to two methods:
- Outsourcing: Hiring another corporation to carry out tasks like manufacturing to save more time.
- Offshoring: Building factories in another country (lower-income country) to save on labour costs.
How Is Global Governance Achieved?
Any good system in the world can run as long as there is good governance, including globalisation.
Global governance can be achieved through a series of global norms, global laws and corporations between global institutions.
While societal norms can vary in different countries, common global norms such as upholding human rights, environmental protection, and trade relations are universal.
That said, it's important to have clear and structured global laws — legally binding with concrete consequences to strengthen global governance.
This is where global institutions come in to regulate and execute these global laws and norms accordingly. Different global institutions have specified roles to promote growth and stability in different spheres.
| Global organisation | Function |
|---|---|
| World Trade Organisation (WTO) | Facilitates economic equality especially among lower income countries. |
| World Bank and International Money Fund (IMF) | Provides different types of loans to stabilise the economy during times of instabilities. |
| International Criminal Court | Maintains social equality by prosecuting anyone who have committed any crimes against humanity. |
| World Wildlife Fund (WWF) | Supports environmental stability by conserving the environment. |
| World Health Organisation (WHO) | Promotes global health and combats global epidemics. |
What Must Be Done To Protect Global Commons?
Global commons are areas that do not belong to any country — they belong to everybody and every country can benefit from them. Unfortunately, these commons can be easily exploited for selfish measures in the name of "development".
The four global commons are international waters, the atmosphere, outer space, and Antarctica.
To protect the global commons, special international laws are introduced and implemented by global institutions to tackle issues like the competition of territorial claims between states, and marine pollution.
Other effective ways to continue the protection towards the global commons include raising sufficient funds for maintenance efforts and also organising campaigns (local and international level) to raise awareness.
We hope this article has offered you an overview of the regulation of global systems and global governance. They share an interdependent relationship for sustainable development and benefits.
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